The agricultural sector, particularly in developing countries, faces limited investments that result in low productivity, stagnant production, poor social conditions for producers and environmental degradation of natural resources. Blended finance, a form of impact investing that pools funds from different sources, seeks to address these challenges. Thus, measuring environmental and social performance becomes critical to secure future funding. Many funds rely on third party sustainability certifications as decisive investment criteria, while others undertake the challenge inhouse and develop their own impact assessment tools. In this paper, we examine this make/buy strategic decision by funds and the determinants of their choice. We collect our data through multiple interviews from a sample of blended finance institutions operating in Latin America.

Strategic Management Society
Incae Business School

Prado, A, Smith, T., Ferris, O., Molina-Murillo, S., & Rivera, L. (2017). Outsourcing of Impact Measurement & Assessment in Blended Agricultural Finance: The Role of Sustainability Certifications as a Criterion for Access to Financing. Presented at the Strategic Management Society.